Slides
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Q3 2025 Earnings Call & Webcast TSX: AIF | November 6, 2025
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Forward-looking information & statements Certain information in this Presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this Presentation, other than statements of current and historical fact, is forward- looking information. Forward-looking information includes, but is not limited to, statements relating to expected financial and other benefits of acquisitions and the closing of acquisitions (including the expected timing of closing), as well as the discussion of our business, strategies and leverage (including the commitment to increase borrowing capacity), expectations of future performance, including any guidance on financial expectations, and our expectations with respect to cash flows and liquidity. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “plan”, “would”, “could”, “should”, “continue”, “goal”, “objective”, “remain” and other similar terminology. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may not be known and may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information (including sections entitled “Business Outlook”) include, but are not limited to: no significant impact on our business from changes or potential changes to trade regulations, including tariffs; engagement and product pipeline opportunities in Analytics will result in associated definitive agreements; continued adoption of cloud subscriptions by our customers; retention of material clients and new sales; sustaining our software and subscription renewals; successful execution of our business strategies; consistent and stable economic conditions or conditions in the financial markets; consistent and stable legislation in the various countries in which we operate; consistent and stable foreign exchange conditions; no disruptive changes in the technology environment; opportunity to acquire accretive businesses and the absence of negative financial and other impacts resulting from strategic investments or acquisitions on short term results; successful integration of acquired businesses; and continued availability of qualified professionals. Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks include, but are not limited to: the CRE market conditions; the general state of the economy; our financial performance; our financial targets; our international operations; acquisitions, joint ventures and strategic investments; business interruption events; third party information and data; cybersecurity; industry competition; professional talent; our subscription renewals; our sales pipeline; client concentration and loss of material clients; product enhancements and new product introductions; technological strategy; our use of technology; intellectual property; compliance with laws and regulations; privacy and data protection; artificial intelligence; our leverage and financial covenants; interest rates; inflation; our brand and reputation; our cloud transition; fixed price engagements; currency fluctuations; credit; tax matters; our contractual obligations; legal proceedings; regulatory review; health and safety hazards; our insurance limits; our ability to meet the solvency requirements necessary to make dividend payments; our share price; share repurchase programs; our capital investments; the issuance of additional common shares and debt; our internal and disclosure controls; and environmental, social and governance (“ESG”) matters and climate change, as well as those described in our annual publicly filed documents, including the Annual Information Form for the year ended December 31, 2024 (which are available on SEDAR+ at www.sedarplus.ca). Investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this MD&A and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, our financial or operating results, or our securities. Certain information in this presentation and in the prepared remarks, including references to “Business Outlook”, may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes. Non-GAAP and other measures The Company uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). The Company believes that these measures may assist investors in assessing an investment in the Company’s shares as they provide additional insight into the Company’s performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. Please refer to the Company’s most current MD&A or the Appendix of this presentation for a full list and definitions of the non-GAAP and other financial measures referred in this presentation. 2
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Executive Chair update Mike Gordon Executive Chair & incoming CEO
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Financial review Pawan Chhabra Chief Financial Officer Q3 2025 results
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Q3 2025 results 5 * Non-GAAP and other financial measure | CC = Constant Currency | All growth rates (% & bps) are presented on a y/y view | All amounts except EPS figures in C$M C$M, except for EPS & margin figures Q3 2025 Q3 2024 Y/Y CHANGE Revenues $133.3 $128.4 2.2% Profit (Loss) from continuing operations $0.5 ($2.9) 117.8% Basic EPS from continuing operations $0.01 ($0.06) 116.7% Diluted EPS from continuing operations $0.01 ($0.06) 116.7% Adjusted EBITDA* $25.6 $21.6 16.1% Adjusted EBITDA Margin* 19.2% 16.8% 230 bps Adjusted EPS* $0.38 $0.19 100% Net cash provided by operating activities $22.6 $18.4 22.8% Free Cash Flow* $21.9 $16.0 36.5% *CC *CC REVENUE: ADJUSTED EBITDA: Analytics Appraisals & Development Advisory Analytics Appraisals & Development Advisory For comparative purposes, note that net cash provided by operating activities and Free Cash Flow in Q3 2024 included contribution from the Property Tax business which was sold in January 2025. *CC ADJUSTED EBITDA MARGIN*: Analytics Appraisals & Development Advisory
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0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $20 $40 $60 $80 $100 $120 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue Adjusted EBITDA Adjusted EBITDA Margin* % Analytics results 6 C$M Q3 2025: Revenue $108.0M 6.2% 4.2% Recurring Revenue* $102.4M 7.3% 5.2% Adjusted EBITDA $35.5M 15.2% 12.7% Adjusted EBITDA Margin* 32.8% 260 bps 250 bps As reported CC* * Non-GAAP and other financial measure | CC = Constant Currency | All growth rates (% & bps) are presented on a y/y view Continued revenue growth & margin expansion
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Analytics Recurring Revenue* 7 $40 $43 $41 $43 $43 $50 $55 $60 $68 $71 $77 $86 $85 $89 $87 $93 $92 $95 $95 $101 $99 $101$102 $0 $20 $40 $60 $80 $100 $120 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 C$ (M) C$M Growth driven by strong software sales (including double-digit growth at ARGUS Intelligence) as well as steady growth at VMS Growing recurring revenue base, 23% CAGR from 2020-2024 Q3 2025: $102.4M 5.2% CC* * Non-GAAP and other financial measure | CC = Constant Currency | CAGR = compound annual growth rate | All growth rates except for CAGR are presented on a y/y view
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Analytics Adjusted EBITDA margin* 8 *Non-GAAP and other financial measure | CC = Constant Currency | bps = basis points | All growth rates are presented on a y/y view Consistent margin expansion from higher quality earnings & operational improvements Q3 2025: 32.8% 250 bps CC* Margin improvement driven by: Revenue growth Portfolio optimization Global Service Center efficiencies Benefits from restructuring activities Expense growth moderating 16.6% 14.0% 16.8% 23.9% 26.9% 20.7% 21.4% 23.8% 24.5% 27.3% 24.3% 23.3% 26.1% 30.3% 33.8% 28.5% 26.2% 29.2% 32.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025
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Appraisals & Development Advisory results 9 C$M -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% -$5 $0 $5 $10 $15 $20 $25 $30 $35 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue Adjusted EBITDA Adjusted EBITDA Margin* * Non-GAAP and other financial measure | CC = Constant Currency | All growth rates (% & bps) are presented on a y/y view Q3 2025: Revenue $25.4M 5.2% 5.1% Adjusted EBITDA $2.1M 34.5% 34.0% Adjusted EBITDA Margin* 8.2% 370 bps 360 bps As reported CC* Navigating macro conditions
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Balance sheet 10 $405.1M $157.2M 1.21x CASH POSITION BANK DEBT FUNDED DEBT TO EBITDA RATIO** * Non-GAAP and other financial measure | All Balance Sheet figures are as at Sept. 30, 2025 | Available Capital = cash + bank credit facilities available $797.9M AVAILABLE CAPITAL* ** As defined in the Company’s credit facility agreement available on SEDAR`+ Significant capital to invest in growth
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2025 Business Outlook * Non-GAAP and other financial measure | % & bps changes presented on a Constant Currency basis over the corresponding period in 2024. Disclaimer: Forecasting future results or trends is inherently difficult for any business and actual results or trends may vary significantly. The business outlook is forward-looking information that is based upon the assumptions and subject to the material risks discussed under the “Forward-Looking Information Disclaimer” section. Key assumptions for the business outlook by segment: Analytics: consistency and growth in number of assets on the Valuation Management Solutions platform, continued ARGUS cloud conversions, new sales (including new sales converting to revenue within Management’s expected timeline and uptake on new product functionality), client and software retention consistent with 2024 levels, pricing action, improved operating leverage, as well as consistent and gradually improving economic conditions in financial and CRE markets, in particular a stronger recovery in the second half of the year. Appraisals & Development Advisory: improved client profitability and improved operating leverage. The Consolidated outlook assumes that corporate costs will remain elevated throughout 2025 consistent with 2024 levels. The change in our revenue guidance range reflects ongoing interest rate volatility and global trade uncertainty. 11 FY2025 (Constant Currency) Q4 2025 (Constant Currency) ANALYTICS • 2-4% total Analytics revenue growth (previously 3-6%) • 4-6% Recurring Revenue* growth (previously 5-7%) • 250-350 bps of Adjusted EBITDA margin* expansion (unchanged) • 3-5% total Analytics revenue growth • 5-7% Recurring Revenue* growth • 200-300 bps of Adjusted EBITDA margin* expansion APPRAISALS & DEVELOPMENT ADVISORY • Mid single digit revenue decline (previously flat to low single digit revenue decline) • Adjusted EBITDA margin* expansion (unchanged) • Low-single digit revenue decline • Flat Adjusted EBITDA margin* CONSOLIDATED • 0-2% revenue growth (previously 2-4%) • 350-450 bps of Adjusted EBITDA margin* expansion (previously 400-500 bps) • 2-4% revenue growth • 100-200 bps of Adjusted EBITDA margin* expansion
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Register for 2025 investor day Both in-person and virtual participants are encouraged to register for the live event in advance November 20, 2025, New York City
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Question period For additional inquiries please email IR@altusgroup.com
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APPENDIX
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Reportable segment performance 15 Revenues Three months ended September 30, Nine months ended September 30, In thousands of dollars 2025 2024 % Change Constant Currency % Change 2025 2024 % Change Constant Currency % Change Analytics $ 108,135 $ 101,811 6.2% 4.2% $ 318,582 $ 303,561 4.9% 1.8% Appraisals and Development Advisory 25,399 26,796 (5.2%) (5.1%) 76,017 81,244 (6.4%) (6.5%) Intercompany eliminations (219) (188) (16.5%) (18.9%) (666) (579) (15.0%) (15.6%) Total $ 133,315 $ 128,419 3.8% 2.2% $ 393,933 $ 384,226 2.5% 0.0% Adjusted EBITDA Three months ended September 30, Nine months ended September 30, In thousands of dollars 2025 2024 % Change Constant Currency % Change 2025 2024 % Change Constant Currency % Change Analytics $ 35,506 $ 30,825 15.2% 12.7% $ 93,854 $ 80,753 16.2% 11.4% Appraisals and Development Advisory 2,090 3,191 (34.5%) (34.0%) 5,820 5,508 5.7% 6.4% Corporate (11,957) (12,448) 3.9% 5.2% (29,777) (35,786) 16.8% 20.0% Total $ 25,639 $ 21,568 18.9% 16.1% $ 69,897 $ 50,475 38.5% 33.1%
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Income statement 16 Three months ended September 30, Nine months ended September 30, In thousands of dollars 2025 2024 2025 2024 Revenues $ 133,315 $ 128,419 $ 393,933 $ 384,226 Expenses Employee compensation 79,023 78,242 250,144 253,588 Occupancy 1,134 1,318 4,009 3,680 Other operating 35,731 29,817 85,100 80,783 Depreciation of right-of-use assets 1,819 2,422 5,847 6,676 Depreciation and amortization 7,982 8,769 24,651 26,993 Acquisition and related transition costs (income) 21 25 87 8,894 Share of (profit) loss of joint venture (1,127) (1,507) (1,248) (2,013) Restructuring costs (recovery) 6,616 2,008 13,753 9,113 (Gain) loss on investments (680) (881) (674) (640) Finance costs (income), net – leases 368 277 967 637 Finance costs (income), net – other (1,681) 6,016 (3,377) 14,676 Profit (loss) before income taxes from continuing operations 4,109 1,913 14,674 (18,161) Income tax expense (recovery) 3,597 4,790 11,308 5,504 Profit (loss) from continuing operations, net of tax $ 512 $ (2,877) $ 3,366 $ (23,665) Profit (loss) from discontinued operations, net of tax 393 3,532 382,087 26,450 Profit (loss) for the period $ 905 $ 655 $ 385,453 $ 2,785
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Cash flow, working capital, Capex & FCF 17 Note: Free Cash Flow is a Non-GAAP and other financial measure Cash Flow Three months ended September 30, Nine months ended September 30, In thousands of dollars 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 22,564 $ 18,372 $ 51,024 $ 55,212 Net cash provided by (used in) financing activities (5,881) (18,863) (329,303) (43,312) Net cash provided by (used in) investing activities (1,200) (2,318) 636,450 (7,585) Effect of foreign currency translation 6,925 1,465 (3,641) 1,921 Change in cash position during the period (1) $ 22,408 $ (1,344) $ 354,530 $ 6,236 Free Cash Flow $ 21,854 $ 16,013 $ 47,335 $ 47,866 Dividends paid $ (5,755) $ (6,200) $ (18,109) $ (18,454) (1) Changes in cash positions during the periods disclosed are inclusive of net cash flows attributable to the operating, investing and financing activities of discontinued operations. Working Capital In thousands of dollars September 30, 2025 December 31, 2024 Current assets $ 556,630 $ 482,948 Current liabilities (206,345) (288,096) Working capital $ 350,285 $ 194,852 Capital Expenditures Three months ended September 30, Nine months ended September 30, In thousands of dollars 2025 2024 2025 2024 Property, plant and equipment additions $ 316 $ 937 $ 2,489 $ 1,362 Intangibles additions 394 1,422 1,200 5,984 Capital expenditures $ 710 $ 2,359 $ 3,689 $ 7,346
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Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings 18 (1) Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing financial and operating performance. (2) Included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss). (3) Included in employee compensation expenses in the interim condensed consolidated statements of comprehensive income (loss). (4) (Gain) loss on investments relates to changes in the fair value of investments in partnerships. (5) Other non-operating and/or non-recurring (income) costs for the three and nine months ended September 30, 2025 relate to legal, advisory, consulting, and other professional fees related to organizational and strategic initiatives. These are included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss). (6) Refer to page 4 of the MD&A for the definition of Adjusted EPS. (7) For the purposes of reconciling to Adjusted Earnings (Loss), the amortization of intangibles of acquired businesses is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back depreciation of property, plant and equipment and amortization of intangibles and then deducted the depreciation of property, plant and equipment and amortization of intangibles of non- acquired businesses to arrive at the amortization of intangibles of acquired businesses. (8) For the purposes of reconciling to Adjusted Earnings (Loss), the interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps is adjusted from profit (loss) for the period. Per the quantitative reconciliation above, we have added back finance costs (income), net – other and then deducted finance costs (income), net – other prior to adjusting for interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps. (9) For the purposes of reconciling to Adjusted Earnings (Loss), only the tax impacts for the reconciling items noted in the definition of Adjusted Earnings (Loss) is adjusted from profit (loss) for the period. Three months ended September 30, Nine months ended September 30, In thousands of dollars, except for per share amounts 2025 2024 2025 2024 Profit (loss) for the period $ 905 $ 655 $ 385,453 $ 2,785 (Profit) loss from discontinued operations, net of tax (393) (3,532) (382,087) (26,450) Occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 (1) (2,227) (2,320) (6,658) (7,539) Depreciation of right-of-use assets 1,819 2,422 5,847 6,676 Depreciation of property, plant and equipment and amortization of intangibles (7) 7,982 8,769 24,651 26,993 Acquisition and related transition costs (income) 21 25 87 8,894 Unrealized foreign exchange (gain) loss (2) (1,662) 1,963 (2,824) 217 (Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles (2) 958 7 985 1,578 Share of (profit) loss of joint venture (1,127) (1,507) (1,248) (2,013) Non-cash share-based compensation costs (3) 3,948 3,168 10,227 10,054 (Gain) loss on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs (3) (1,764) (741) 900 (2,915) Restructuring costs (recovery) 6,616 2,008 13,753 9,113 (Gain) loss on investments (4) (680) (881) (674) (640) Other non-operating and/or non-recurring (income) costs (5) 8,959 449 12,587 2,905 Finance costs (income), net – leases 368 277 967 637 Finance costs (income), net – other (8) (1,681) 6,016 (3,377) 14,676 Income tax expense (recovery) (9) 3,597 4,790 11,308 5,504 Adjusted EBITDA $ 25,639 $ 21,568 $ 69,897 $ 50,475 Depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses (7) (1,796) (1,747) (4,555) (4,961) Finance (costs) income, net – other (8) 1,681 (6,016) 3,377 (14,676) (Gain) loss on hedging transactions, including currency forward contracts and interest expense (income) on swaps (8) 153 1,679 2,182 704 Tax effect of adjusted earnings (loss) adjustments (9) (9,328) (6,770) (23,809) (16,885) Adjusted earnings (loss)* $ 16,349 $ 8,714 $ 47,092 $ 14,657 Weighted average number of shares – basic 43,097,212 45,927,341 44,242,210 45,748,192 Weighted average number of restricted shares 86,464 251,085 90,011 333,464 Weighted average number of shares – adjusted 43,183,676 46,178,426 44,332,221 46,081,656 Adjusted earnings (loss) per share (6) $0.38 $0.19 $1.06 $0.32
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Summary of consolidated quarterly results 19 * Non-GAAP and other financial measure 2025 2024 2023 In thousands of dollars, except for per share amounts Sep 30 Jun 30 Mar 31 Fiscal 2024 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2023 Dec 31 Results of Operations Revenues $ 133,315 $ 131,453 $ 129,165 $ 519,727 $ 135,501 $ 128,419 $ 130,389 $ 125,418 $ 509,732 $ 131,050 Adjusted EBITDA $ 25,639 $ 28,515 $ 15,743 $ 82,895 $ 32,420 $ 21,568 $ 17,985 $ 10,922 $ 65,763 $ 20,858 Adjusted EBITDA margin 19.2% 21.7% 12.2% 15.9% 23.9% 16.8% 13.8% 8.7% 12.9% 15.9% Profit (loss) for the period from continuing operations, net of tax $ 512 $ 9,277 $ (6,423) $ (793) $ 22,872 $ (2,877) $ (8,634) $ (12,152) $ (33,493) $ (8,319) Profit (loss) for the period from discontinued operations, net of tax $ 393 $ (513) $ 382,207 $ 14,216 $ (12,234) $ 3,532 $ 10,918 $ 11,999 $ 43,725 $ 8,179 Basic earnings (loss) per share: Continuing operations $0.01 $0.21 $(0.14) $(0.02) $0.50 $(0.06) $(0.19) $(0.27) $(0.74) $(0.18) Discontinued operations $0.01 $(0.01) $8.34 $0.31 $(0.27) $0.08 $0.24 $0.26 $0.97 $0.18 Diluted earnings (loss) per share: Continuing operations $0.01 $0.21 $(0.14) $(0.02) $0.48 $(0.06) $(0.19) $(0.27) $(0.74) $(0.18) Discontinued operations $0.01 $(0.01) $8.34 $0.30 $(0.26) $0.08 $0.24 $0.26 $0.95 $0.18 Adjusted earnings (loss) per share $0.38 $0.50 $0.19 $1.17 $0.85 $0.19 $0.14 $(0.01) $0.48 $0.26 Weighted average number shares (‘000s): Basic 43,097 43,841 45,818 45,787 45,904 45,927 45,782 45,533 45,302 45,421 Diluted 43,640 44,197 45,818 46,762 47,193 46,803 46,418 45,533 45,908 45,421
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Constant currency Three months ended September 30, 2025 Nine months ended September 30, 2025 As presented For Constant Currency As presented For Constant Currency Canadian Dollar 1.000 1.000 1.000 1.000 United States Dollar 1.377 1.364 1.399 1.360 Pound Sterling 1.856 1.774 1.837 1.736 Euro 1.610 1.499 1.563 1.478 Australian Dollar 0.901 0.914 0.896 0.901 Three months ended September 30, 2024 Nine months ended September 30, 2024 As presented For Constant Currency As presented For Constant Currency Canadian Dollar 1.000 1.000 1.000 1.000 United States Dollar 1.364 1.342 1.360 1.345 Pound Sterling 1.774 1.698 1.736 1.673 Euro 1.499 1.459 1.478 1.457 Australian Dollar 0.914 0.878 0.901 0.900
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Non-GAAP and other measures definitions 21 Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Management believes that these measures may assist investors in assessing an investment in the Company’s shares as they provide additional insight into the Company’s performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. Adjusted Earnings (Loss): Altus Group uses Adjusted Earnings (Loss) to facilitate the calculation of Adjusted Earnings (Loss) per Share (“Adjusted EPS”). How it’s calculated: Profit (loss) added or (deducted) by: profit (loss) from discontinued operations, net of tax; occupancy costs calculated on a similar basis prior to the adoption of IFRS 16; depreciation of right‐of‐use assets; amortization of intangibles of acquired businesses; acquisition and related transition costs (income); unrealized foreign exchange losses (gains); (gains) losses on disposal of right‐of‐use assets, property, plant and equipment and intangibles; share of (profit) loss of joint venture; non‐cash share‐based compensation costs; (gains) losses on equity derivatives net of mark‐to‐market adjustments on related RSUs and DSUs; (gains) losses on derivatives; interest accretion on contingent consideration payables; restructuring costs (recovery); impairment charges; (gains) losses on investments; (gains) losses on hedging transactions and interest expense (income) on swaps; other costs or income of a non‐operating and/or non‐recurring nature; finance costs (income), net ‐ leases; and the tax impact of these items. Constant Currency: Altus Group uses Constant Currency to allow current financial and operational performance to be understood against comparative periods without the impact of fluctuations in foreign currency exchange rates against the Canadian dollar. How it’s calculated: The financial results and non-GAAP and other measures presented at Constant Currency within this document are obtained by translating monthly results denominated in local currency (U.S. dollars, British pound, Euro, Australian dollars, and other foreign currencies) to Canadian dollars at the foreign exchange rates of the comparable month in the previous year. Adjusted EPS: Altus Group uses Adjusted EPS to assess the performance of the business, on a per share basis, before the effects of the noted items because they affect the comparability of the Company’s financial results and could potentially distort the analysis of trends in business performance. How it’s calculated: Adjusted Earnings (Loss) divided by basic weighted average number of shares, adjusted for the effects of the weighted average number of restricted shares. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”): Altus Group uses Adjusted EBITDA to evaluate the performance of the business, as well as when making decisions about the ongoing operations of the business and the Company’s ability to generate cash flows. This measure represents Adjusted EBITDA determined on a consolidated entity-basis as a total of the Company’s various segments. All other Adjusted EBITDA references are disclosed in the Company’s financial statements and are not considered to be non-GAAP financial measures pursuant to NI 52-112. How it’s calculated: Profit (loss) added or (deducted) by: profit (loss) from discontinued operations, net of tax; occupancy costs calculated on a similar basis prior to the adoption of IFRS 16; depreciation of right‐of‐use assets; depreciation of property, plant and equipment and amortization of intangibles; acquisition and related transition costs (income); unrealized foreign exchange (gains) losses; (gains) losses on disposal of right‐of-use assets, property, plant and equipment and intangibles; share of (profit) loss of joint venture; non‐cash share‐based compensation costs; (gains) losses on equity derivatives net of mark‐to market adjustments on related restricted share units (“RSUs”) and deferred share units (“DSUs”); (gains) losses on derivatives, restructuring costs (recovery); impairment charges; (gains) losses on investments; other costs or income of a non‐operating and/or non‐recurring nature; finance costs (income), net ‐ leases; finance costs (income), net ‐ other; and income tax expense (recovery). Adjusted EBITDA Margin: Altus Group uses Adjusted EBITDA margin to evaluate the performance of the business, as well as when making decisions about the ongoing operations of the business and its ability to generate cash flows. How it’s calculated: Adjusted EBITDA divided by revenue. Free Cash Flow: Altus Group uses Free Cash Flow to understand how much of the cash generated from operating activities is available to repay borrowings and to reinvest in the Company. How it’s calculated: Net cash provided by (used in) operating activities deducted by capital expenditures. Free Cash Flow per Share: Altus Group uses Free Cash Flow per Share to assess how much of the cash generated from operating activities is available to repay borrowings, pay dividends, and reinvest in the Company on a per-share basis as well as to provide insight on our operating leverage and capital allocation efficiency. How it’s calculated: Free Cash Flow divided by the basic weighted average number of shares adjusted for the effects of the weighted average number of restricted shares for the corresponding period.
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Non-GAAP and other measures definitions 22 Organic Revenue: Altus Group uses Organic Revenue to evaluate and assess revenue trends in the business on a comparable basis versus the prior year, and as an indicator of future revenue growth. How it’s calculated: Revenue deducted by revenues from business acquisitions that are not fully integrated (up to the first anniversary of the acquisition). Recurring Revenue, Non-Recurring Revenue, Organic Recurring Revenue: For its Analytics reportable segment, Altus Group uses Recurring Revenue, Non-Recurring Revenue and Organic Recurring Revenue as measures to assess revenue trends in the business, and as an indicator of future revenue growth. How it’s calculated: Recurring Revenue: Revenue from software subscriptions recognized on an over time basis in accordance with IFRS 15, software maintenance revenue associated with the Company’s legacy licenses sold on perpetual terms, Valuation Management Solutions, data subscriptions, and recurring contracts from managed services for technology services. Non-Recurring Revenue: Total Revenue deducted by Recurring Revenue. Organic Recurring Revenue: Recurring Revenue deducted by Recurring Revenue from business acquisitions that are not fully integrated (up to the first anniversary of the acquisition).